Consumer debt in the UK continues to rise
Published On 1 October 2007
Consumer debt in the UK continued to increase in August, making it more likely people will need products like IVAs.Credit Action's latest report shows that consumer debt in the UK rose to £1.363 trillion in August. This means that debt has grown at a rate of 9.9 per cent over the last 12 months.
Mortgage and other secured lending accounts for £1.148 trillion worth of debt and this figure has risen by 10.8 per cent over the last year.
Borrowing on things like credit cards has increased more slowly, rising 5.5 per cent in the year to now stand at £215 billion.
All this means that the average consumer in the UK now owes £56,309 (including mortgages) and pays £3,725 each year servicing the interest on this borrowing.
Recently, Nick O'Reilly, vice president of R3, explained that increased debt meant more people were now seeking things like IVAs.
"Now that the level of borrowing is so much bigger in terms of trillions, the level of people with debt problems is obviously higher than it used to be," he added.
